Saturday, August 30, 2025 - Ethiopian Investment Holdings (EIH), the strategic investment arm of the government of Ethiopia, and Dangote Group have signed a comprehensive shareholders' agreement to develop, construct, and operate a world-class urea fertiliser production complex in Gode, Ethiopia.
Under the partnership structure, EIH will hold a 40 per cent
equity stake. At the same time, Dangote Group will maintain 60 per cent
ownership of the transformative project, representing one of the largest
industrial investments in Ethiopian history.
The ambitious project will establish one of the world's
largest single-site urea fertiliser production complexes, with production
facilities boasting a combined capacity of up to three million metric tons
annually. The facility will rank among the top five largest urea production
complexes globally.
Under the agreement, the two companies will jointly develop,
own, construct, operate, maintain, insure, and finance the state-of-the-art
urea fertiliser plants and associated infrastructure. The comprehensive
development includes advanced gas transport pipelines to evacuate natural gas
from Ethiopia's Hilal and Calub reserves, storage facilities, logistics
infrastructure, and export capabilities designed to serve domestic and regional
markets.
The Project Development costs are estimated not to exceed
$2.5 billion, with completion targeted within 40 months from commencement. A
significant component of this investment includes the construction of a
dedicated pipeline infrastructure to transport natural gas from Ethiopia's
proven Hilal and Calub gas reserves to the Gode production facility, ensuring a
reliable and cost-effective feedstock supply for the fertiliser complex.
This substantial investment underscores both companies'
commitment to transforming Ethiopia's agricultural sector and enhancing
regional food security. The project is expected to significantly reduce
Ethiopia's dependence on fertiliser imports, creating thousands of direct and
indirect employment opportunities in the Somali Regional State and beyond.
The president/chief executive of Dangote Group, Aliko
Dangote, said, "This partnership with Ethiopian Investment Holdings
represents a pivotal moment in our shared vision to industrialise Africa and
achieve food security across the continent.
The strategic location of Gode, combined with Ethiopia's
abundant natural gas resources from the Hilal and Calub reserves, makes this an
ideal location for what will become one of the world's largest fertiliser
complexes."
According to Dangote, we are committed to bringing our
decades of experience in large-scale industrial projects to ensure this venture
becomes a cornerstone of Ethiopia's industrial transformation and a catalyst
for agricultural productivity throughout the region. The 60-40 partnership
structure reflects our commitment to this transformative project while ensuring
strong Ethiopian participation.
The chief executive officer of Ethiopian Investment
Holdings, Dr. Brook Taye stated, "This landmark agreement with Dangote
Group marks a significant milestone in Ethiopia's journey toward industrial
self-sufficiency and agricultural modernisation.
"As the strategic investment arm of the government of
Ethiopia, EIH is proud to secure a 40 per cent stake in what will be one of the
world's largest urea production facilities. The project aligns perfectly with
our national development priorities and will substantially enhance our
agricultural productivity while positioning Ethiopia as a regional hub for
fertiliser production."
Taye noted that "the utilisation of our domestic Hilal
and Calub gas reserves through dedicated pipeline infrastructure ensures energy
security and cost competitiveness for decades to come. We are confident that
this partnership will deliver tremendous value to Ethiopian farmers, contribute
to food security, and generate substantial economic benefits for our
nation."
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